What do you think about high leverage in futures trading?

[Henry]

Most crypto traders are advised not to use high leverage when trading. This has kept me thinking why it is so? Do you have any idea for such advice when trading futures?

 

[Frank]

This is one of the fastest ways to lose all your funds if you are not smart to have big margins. There are times that we can experience long wicks that aim to wipe out longs or shorts depending on which direction and if your margin is not huge, you will end up losing money because of the high leverage that you used.

 

[Thomas]

Before you consider making use of high leverage in your future trading or even forex trading, you would have to know how big your trading capital is because that is the only way you can be able to survive liquidating your account if any trade you entered into didn't go according to your evaluation or analysis.

 

[Prisca]

Before you consider making use of high leverage in your future trading or even forex trading, you would have to know how big your trading capital is because that is the only way you can be able to survive liquidating your account if any trade you entered into didn't go according to your evaluation or analysis.

You are right. Those who go with high leverages, especially when the market is volatile, end up losing all of their funds. So, finding out when to enter the market and using low leverage works better.

 

[Donald]

Do you think exchange websites always want you to make money from your trades? The answer is no. Its why they give you features that will entice your greed to earn more but in reality, it's what will make it possible for you to lose everything faster.

 

[Prisca]

Do you think exchange websites always want you to make money from your trades? The answer is no. Its why they give you features that will entice your greed to earn more but in reality, it's what will make it possible for you to lose everything faster.

When traders begin to tame their desires from greed, they will surely make it from trading. This is one thing that I know.

 

[Christopher@]

The high leverages have always been there even also in Forex trading. If you don't know how to calculate your risk and choose to use the max high leverage, if the trade doesn't go in your favour, you're going to blow your account.

 

[Thomas]

You are right. Those who go with high leverages, especially when the market is volatile, end up losing all of their funds. So, finding out when to enter the market and using low leverage works better.

They always have two options of possibility in what they decide to with using a very high leverage when they are trading. If they win, the winning will be very big and vice versa.

 

[William]

Most crypto traders are advised not to use high leverage when trading. This has kept me thinking why it is so? Do you have any idea for such advice when trading futures?

It is very important for you too minimize the risk you take whenever you are trading otherwise you stand a chance of blowing your account without having any means of recovery. I don't advise using high leverage when trading.